With some delay, the Dax has reached a record high according to fresh US inflation data and has taken the 16,000 mark into view. The leading German index climbed in the early afternoon up to 15,882 points and thus to a historic high. On Xetra, the Dax was then 0.4 percent firmer at 15,826 points. The MDax of the medium-sized values advanced to 35,757 points.
In the US, the Dow Jones and Nasdaq started trading with slight gains. The shares of the Mainz vaccine manufacturer Biontech, which are listed on the Nasdaq and which had risen steeply in the past few days, collapsed by around 20 percent due to profit-taking and an examination by the EU for possible side effects.
Dax, Dow and stocks at a glance: Here you go to the stock exchange page
US inflation remains above 5 percent
In the USA, the inflation rate remained at a high level in July. Compared to the same month last year, prices rose 5.4 percent, as the Department of Labor announced in Washington on Wednesday. The rate had already been 5.4 percent in June. This was the highest rate since August 2008. Inflation is still well above the Fed’s inflation target, which is aiming for two percent. According to NordLB, US inflation is likely to remain at around five percent over the course of the year, “which means that the Fed has clearly missed its target.
In the foreign exchange market, the US dollar buckled in response to the data, but was able to smooth out most of its losses quickly. The euro stood at $ 1.1735, only slightly higher than before the figures were announced.
Shock at ThyssenKrupp, disillusionment at Hella
For the individual stocks, investors take a close look at the quarterly figures from Eon, Thyssenkrupp, Uniper and Lanxess, among others. The utility Eon raised its forecast. The profit in the first half of the year was better than expected, said a trader. Good business with the auto industry also makes the chemical company Lanxess more optimistic for 2021.
The shares of the conglomerate Thyssenkrupp fell by around 5 percent according to the numbers. The expectations of the industrial group were not high, but the reduction of the target for the free inflow of funds is still putting a heavy strain on the price, said a stockbroker.
Hella shares slipped by around 5 percent on Wednesday. The offers for the auto supplier are likely to be around 60 euros per share, rather below the previously rumored price, according to the market.
Biontech share drops again after record rally
The shares of the Mainz vaccine manufacturer Biontech, which are listed on the Nasdaq and which had risen steeply in the past few days, were among the biggest losers on the stock exchange on Wednesday. She expanded her losses to 18 percent in the evening. Most recently, the share was quoted at $ 350 – the day before, the share had temporarily reached a record high of $ 450. However, the market value of Biontech had doubled in the past four weeks. Profit-taking has now created selling pressure – investors are taking money off the table. Selling pressure was heightened by news that the EU was looking to investigate new possible side effects of mRNA vaccines, including an allergic skin reaction and kidney inflammation. The EU authorities did not provide any information on how many possible cases there might be, but there was talk of a small number of reports.
Moderna’s paper also lost around 10 percent at times on the Nasdaq, after losing almost 6 percent the day before. Bank of America analyst Geoff Meacham had reiterated his “underperform” judgment on the shares of the US corona vaccine producer the day before. With a view to the fundamental basis of the company, the valuation no longer corresponds to reality, he wrote.
US stock exchanges: Dow Jones marks another record high
Wall Street investors reacted with relief to the stagnation in the US inflation rate. The Dow Jones Industrial (DJI) climbed shortly after the start of trading to just below the 35,500 mark. Most recently, it increased by 0.55 percent to 35,458 points. The S&P 500 rose to just under 4450 points and recently gained 0.24 percent to 4447.09 points. The technology-heavy selection index Nasdaq 100 hardly got anywhere.
“The big surprise with US inflation did not materialize,” wrote portfolio manager Thomas Altmann from asset manager QC Partners. In a month-on-month comparison, the upward trend in prices has also slowed significantly. Compared to the same month last year, consumer prices rose by 5.4 percent in July and thus remained at the June level. Economists had expected a slight decline, but the deviation was apparently of little consequence in the market.
Among the individual values in the DJI, the shares of the home improvement chain Home Depot were the front runner with plus 2.0 percent, followed by those of the retail giant Walmart, which rose by 1.6 percent. The shares of the credit card company Visa, which fell by 0.7 percent, were at the bottom.
Bitcoin soars above $ 46,000
The cryptocurrency Bitcoin hovered around the $ 46,000 mark on Wednesday. The cyber currency has recovered significantly in the past four weeks, with Bitcoin falling below the $ 30,000 mark in mid-July.
The soaring in Bitcoin lets investors grab the stocks of cryptocurrency miners. Bit Mining’s paper and Bitfarms’ shares have recently been in high demand.
Kryptohype: Coinbase with profit growth of almost 5000 percent
Coinbase, the largest US trading platform for cyber currencies such as Bitcoin, made splendid earnings in the second quarter despite the sudden end of the record hunt on the crypto market. In the three months to the end of June, profits shot up by around 4900 percent year-on-year to 1.6 billion dollars (1.4 billion euros). Coinbase announced on Tuesday after the US market closed. Revenues grew by over 1000 percent to $ 2.0 billion. However, a large part is due to a one-off effect. The stock gained 2 percent in early trading.
However, the business is heavily dependent on the ongoing crypto hype. Recently, the prices of Bitcoin and Co. have already increased significantly, but the company still expects lower growth. The strong figures for the past quarter therefore initially did not trigger any major price jumps on Wall Street, the shares of Coinbase only rose slightly after the hours. Since the brilliant IPO of the crypto exchange in April, the company, which was founded in 2012, has had a tough time with investors anyway. The share price has fallen by almost 30 percent since it premiered on the New York tech exchange Nasdaq, and on Tuesday it closed at just under $ 270 .
Asia’s stock exchanges hardly changed
Asian stock markets are treading on the ground on Wednesday. Investors do not let go of worries about the spread of the delta variant of the corona virus. Case numbers are rising in many Asian countries, raising concerns about measures and restrictions that could affect economic recovery. “There are many more concerns about Delta because it affects many Asian economies where vaccination rates are lower,” said Ray Farris, Credit Suisse investment strategist for South Asia. The Nikkei index, which comprises 225 values, was 0.7 percent higher at 28,069 points. The broader Topix index rose 1 percent and stood at 1956 points. The Shanghai stock exchange was up 0.2 percent. The index of the most important companies in Shanghai and Shenzen lost 0.1 percent.
In Asian foreign exchange trading, the dollar gained 0.1 percent to 110.65 yen and was down 0.1 percent to 6.4817 yuan. In relation to the Swiss currency, it was quoted 0.1 percent lower at 0.9218 francs. At the same time, the euro remained almost unchanged at 1.1721 dollars and was quoted little changed at 1.0810 francs. The pound sterling lost 0.1 percent to $ 1.3831.
Oil prices are falling somewhat
Oil prices fell a little on Wednesday, ending the rise in the first two trading days of the week for the time being. Market observers spoke of a slight countermovement. A barrel (159 liters) of North Sea Brent cost US $ 70.49 that morning. That was 14 cents less than the day before. The price of a barrel of the American West Texas Intermediate (WTI) also fell by 14 cents to $ 68.15.
In the oil market, the development of inventories in the USA has moved more into the focus of investors, with data on gasoline reserves in particular being the focus of interest. The previous evening it became known that the American Petroleum Institute (API) had recorded a decline in gasoline inventories of 1.11 million barrels in the past week.
The inventory data gave oil prices a significant boost on Tuesday, the market said, before a slight countermovement set in on Wednesday morning. In addition to declining gasoline inventories, the API has also seen US oil reserves decline, but only by 0.8 million barrels. Falling reserves can be an indication of increased demand. If the decline is confirmed by official US government inventory data scheduled for the afternoon, oil prices could get a new boost.